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Tuesday 16.10.2018 | Name days: Daiga, Dinija

Inflation in Latvia reached 2.6% in July

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Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUCompared to July 2017, the average level of consumer price rose by 2.6 % in July 2018.  Prices of goods grew by 2.4 % and prices of services by 3.2 %.

In July 2018, as compared to 2015, consumer prices have risen by 5.6 %. Prices of goods have increased by 3.9 % and prices of services by 9.9 %.

Also when compared to July 2017, the average level of consumer prices was mainly influenced by the rise in prices of goods and services related to transport, goods and services related to housing, alcoholic beverages and tobacco products, prices in miscellaneous goods and services group, prices of health care, as well as drop in prices of food and non-alcoholic beverages in July 2018, according to data from the Central Statistical Bureau of Latvia.

Within the group of food and non-alcoholic beverages, the greatest downward pressure on the price changes during the year was exerted by prices of vegetables (reduction of 11.5 %).  Decline was also observed in the prices of sugar (of 35.0 %), fresh fruit (7.9 %), coffee (8.0 %), dried, salted or smoked meat (1.7 %), chocolate (5.0 %), flours and other cereals (6.3 %), and vegetable oil (5.5 %). Increase, in its turn, was recorded in prices of milk (of 7.0 %) and dairy products like butter (18.6 %), sour cream (7.1 %), cheese and curd (+3.0 %), as well as kefir (8.4 %). Rise was also observed in prices of poultry (5.2 %), fruit and vegetable juices (8.8 %), bakery products (2.7 %), bread (2.0 %), and eggs (7.4 %).

The average level of prices of alcoholic beverages and tobacco products went up by 4.2 %. Prices of alcoholic beverages grew by 3.4 %, which was mainly influenced by the rise in prices of spirits and wine. Prices of tobacco products grew on average by 5.6 %.

Prices of goods and services related to housing increased by 4.6 %. An upturn was registered in prices of solid fuels, heat energy, natural gas, water supply, maintenance charges in multi-occupied buildings, as well as refuse collection.

Within the health care group, the average level of prices went up by 2.9 %. Increase was recorded in prices of dental services and prices in medical specialist practice, as well as prices of pharmaceutical products.

The main upward pressure within the group of goods and services related to transport was applied by prices of fuels for transport (of 20.8 %), of which prices of diesel grew by 24.2 %, of petrol by 18.5 %, and of auto gas by 7.2 %. Increase was also recorded in prices of maintenance and repair of personal transport equipment, while prices of second-hand motor cars fell.

Within the group of miscellaneous goods and services, the average level of prices grew by 3.4 %, which was mostly influenced by the rise in prices of motor vehicle insurance. Rise was also recorded in prices of hairdressing salons and personal grooming establishment services, financial services. Decline, in its turn, was registered in prices of articles for personal hygiene and beauty products.

Among other commodity groups, the most significant growth was recorded in prices of catering services, garments, television subscription fee, and telecommunication services. In its turn, a drop was observed in prices of package holidays, as well as household cleaning and maintenance products.

Compared to June, the average level of consumer prices decreased by 0.8 % in July 2018. Prices of goods fell by 1.3 %, while prices of services rose by 0.4 %. Decline in prices of clothing and footwear, food and non-alcoholic beverages, alcoholic beverages and tobacco products had the greatest lowering impact, while prices of goods and services related to housing, goods and services related to recreation and culture had the most important upward effect.

Over the month, prices of food and non-alcoholic beverages dropped by 1.2 %. Prices of fresh vegetables (drop of 14.3 %) had the strongest lowering influence on the average price level within the group. Decline was registered in prices of coffee (of 3.8 %), eggs (4.7%), cheese and curd (2.1 %), fresh fruit (2.1 %), as well as dried, salted or smoked meat (0.9 %). Rise, in turn, was recorded in prices of butter (of 7.8 %), potatoes (6.8 %), fresh and chilled fish (8.1 %), poultry (1.5 %), and pasta products (6.4 %).

The average level of alcoholic beverage and tobacco product prices fell by 0.4 %. Prices of alcoholic beverages dropped by 0.8 %, which was mainly influenced by the decline in prices of beer and wine. As the excise duty rose as of 1 July 2018, prices of tobacco products went up by 0.2 %.

Mainly due to the influence exerted by discounts, prices of garments fell by 9.3 % and of footwear by 11.6 %.

Prices of housing goods and services increased by 0.5 %. Rise was recorded in the average level of natural gas and heat energy prices, as well as rentals for housing. As the new mandatory procurement and capacity components came into force as of 1 July, the average level of electricity prices dropped.

Within the recreation and culture group, the average level of prices rose by 0.4 %, which was mainly affected by the 5.9 % increase in prices of package holidays. Prices of pet foot rose as well. In its turn, the average level of fiction book and flower prices reduced.

Among other commodity groups, the most notable decline was registered in prices of articles for personal hygiene and beauty products, second-hand motor cars, as well as household cleaning and maintenance products. Rise was observed in prices of passenger transport by sea.

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